The non-alcoholic drinks market has witnessed rapid growth over the past few yearsin India. Increasing middle class population, rapid urbanisation and rising disposable income are some of the major factors fuelling this growth.

The industry is broadly classified into soft drinks (carbonated and non-carbonated drinks) and hot beverages. The carbonated drinks market is close to Rs 6,000 crore and is growing by 10-12 per cent annually.

The fruit-based beverage market stands at Rs 5,000 crore and is growing at 35-40 per cent annually. The fruit-based beverage market is divided into three segments — fruit drinks, nectar and 100 per cent juice — and is currently dominated by Dabur, Parle Agro, PepsiCo and HUL.

The Functional drinks segment is dominated by energy drinks. The current market size of energy drinks in India is around Rs 500 crore and it is expected to grow at a CAGR of 25 per cent.

Within the hot beverages category, India is the largest producer of tea with a total turnover of around Rs 8,500 crore, growing at a rate of 1-2 per cent annually. India is the world’s fifth largest producer of coffee, accounting for 4 per cent of the world’s production.

Fruit/vegetable juice segment is expected to grow at a CAGR of 30 per cent in value terms, followed by the energy drinks segment at a CAGR of around 25 per cent in value terms.